Depending on the tax system and the category of your business, your accounting obligations will vary. Do you know your accounting obligations? What are these rules that concern your accountant? The overview of accounting obligations in business, in the rest of this article!
Concerning Companies with Normal Real Tax Regime
Some companies have to keep accrual accounting. These are in particular those belonging to companies depending on the real normal tax regime.
Commitment accounting is the complex system of accounting. It is based on the principle of recording all purchasing invoices, sales and more generally all the economic and financial flows of the company. Any accounting record must thus be able to announce the origin, the allocation as well as the content of each data item, accompanied by the references of the supporting document to the record.
Each month, the auxiliary journals must be centralized. As a manager, you have an obligation to make sure you keep a journal book as well as a ledger. In addition, at least once a year, an inventory of active as well as passive elements must be carried out.
With regard to annual accounts, companies must draw up a balance sheet, an income statement and annexes according to the basic rules. However, they may prefer a simplified presentation of these documents if they meet these thresholds:
· 50 employees;
· € 4 million total on the balance sheet;
· € 8 million turnover
Finally, the tax package is slightly different from that of the simplified regime. She presents more important details of the business to the British tax authorities.
Accounting Obligations of A Company With A Simplified Real Tax Regime
These companies can keep simplified accounts: Those belonging to the BIC, or imposed on the IS, and which benefit from the real simplified tax system . Simplified accounting implies that during the year, these companies can keep cash accounts, and that they do not recognize debts and receivables until the end of the year.
Cash accounting is the simplified system of accounting. You see the operations of your business only at the time of receipts and disbursements.
Affiliated with this scheme, you are not obliged to centralize your auxiliary journals monthly. You can do this on a quarterly basis. (Your obligation to keep journal and general ledger does not go away, however). You can also assess your fuel costs on a lump sum basis.
You will still need to establish your asset and liability inventory at least once every twelve months. Regarding your stocks and work in progress, you can carry out a simplified evaluation, using a flat-rate method.
With regard to annual accounts, companies may prefer a simplified presentation for their income statement and balance sheet. These are also exempt from the appendix if, at the end of their financial year, they do not exceed 2 out of the following 3 thresholds:
· 10 employees;
· € 350,000 in balance sheet total;
· € 700,000 in turnover;
As indicated, the tax package presents less details of the company to the administration.
Observation on The Simplified Real Tax System
Companies excluded from micro-entrepreneurship and whose turnover excluding tax does not exceed:
· € 788,000 (-for the sale or supply of accommodation);
· € 238,000 (- for service provision activities);
Accounting Obligations of a Company Under the Controlled Declaration Regime
For any company dependent on BNC (non-commercial profits) and the controlled declaration regime, this must comply with the accounting obligations linked to cash accounting during its exercise.
In this scheme, you will see your receipts or your expenses progressively. However, an option for accrual accounting remains possible.
You will need to keep a daily log of your daily income and expenses. This must contain the date of the receipt or expense, the identity of the client or supplier, the nature and amount of the receipt or expense, as well as the form of payment used. Also shown are receipts justified and from cash payments of less than € 76, which can be entered at the end of the day. Finally, you will have to record your meal costs, laundry costs at home, doctors, car and two wheels, ... which you can deduct at a flat rate.
NB: Keeping a register of fixed assets and depreciation is an obligation.
Concerning the companies affiliated to the controlled declaration regime, these are not subject to an obligation to draw up a balance sheet, an income statement and an annex each year. On the other hand, they must establish a tax profit and loss account using declaration no. 2035. However, you will be invited in the event of a tax audit to be able to justify in detail the amounts indicated on your package.
Observation on the Controlled System
The controlled system is the equivalent of the real tax system for companies dependent on BNCs. The administration taxes the manager on the tax profit (unlike the micro-BNC whose base is turnover whatever the amount of expenditure). Companies with revenues in excess of € 70,000 excluding tax on services have their profits compulsorily taxed. However, it is optional for others.
AHW
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